The bankrupt, state-owned SAA airline company will manage to pay its staff salaries for January, but that’s where it all ends.
With a bankrupt government failing to fulfill its pledge to pump another R2bn into the soe, it looks as if SAL will not remain standing.
The airfreight company faces three serious problems, and the solutions to this are vague and unclear, as different measures could not create a better situation.
The SAA needs at least R2bn to get its planes up, but with the many cancellations it has had to announce, its passengers are becoming less and less and profitability is becoming almost impossible.
The government’s inability to borrow R2 billion from any banker in the country has failed, which is now seen as a vote of no confidence in the financial approaches the regime is following.
It can inflict a final blow.
The large number of workers who should never have been hired is another reason why the state-run entity is faltering in the abyss, and experts believe this is where the redress action should begin, by getting rid of leeches.